Jargon: Strategic Analysis, Strategic Environment, Competitive Environment, Internal Appraisal
This artcile concerns the balance between resources and capabilities and opportunities from the environment. Many firms fail due to not being able to match the changing environment. Taking a look at the environment in which your firm is operating can help detect these changes. One such technique is PESTLE (Political, Economic, Sociological, Technological, Legal, Environmental).
Activity: Make a list of issues under these categories that affect your business.
Analysing your competitors is just as important. You need to understand their motives, what you think they will do and what they have done. Remember – competitors don’t always react in a rational way. Many people use “Porters five forces” as a tool.
What are the skills, assets, resources and experience of your business. This will discover the firms capabilities and you need to ask if they are critical to success.
Information gathered from this process can be vast and is best summarised in a SWOT matrix.
Try this whole process – It is amazing what comes to the surface.
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